10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

Quarterly report pursuant to Section 12(b) or (g) of the Securities Exchange Act of 1934

For the quarterly period	Commission File Number
ended March 31, 2017	0-17555

The Everest Fund, L.P.

(Exact name of registrant as specified in its charter) 

Iowa	42-1318186
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

1100 North 4th Street, Suite 232, Fairfield, Iowa 52556

(Address of principal executive offices)            (Zip Code)

Registrant’s telephone number, including area code:

(641) 472-5500 

Not Applicable

(Former name, former address and former fiscal year, if changed since last report.) 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o	Accelerated filer o
Non-accelerated filer o (Do not check if a smaller reporting company)
Smaller reporting company x	Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes o No x

Table of Contents

Part I:	Financial Information
Item 1.	Financial Statements	3
	Statements of Financial Condition March 31, 2017 (Unaudited) and December 31, 2016 (Audited)	3
	Condensed Schedule of Investments March 31, 2017 (Unaudited)	4
	Condensed Schedule of Investments December 31, 2016 (Audited)	5
	Statements of Operations For the Three Months Ended March 31, 2017 and 2016 (Unaudited)	6
	Statements of Changes in Partners’ Capital (Net Asset Value) For the Three Months Ended March 31, 2017 and 2016 (Unaudited)	7-8
	Statements of Cash Flows For the Three Months Ended March 31, 2017 and 2016 (Unaudited)	9
	Notes to Financial Statements March 31, 2017	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	18
Item 4.	Controls and Procedures	19
Part II:	Other Information	19
Item 1.	Legal Proceedings	19
Item 1A.	Risk Factors	19
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	19
Item 3.	Defaults upon Senior Securities	19
Item 4.	Submission of Matters to a Vote of Security Holders	19
Item 5.	Other Information	19
Item 6.	Exhibits	20

2

PART I. FINANCIAL INFORMATION

Item 1 Financial Statements

Following are Financial Statements for the three months ended March 31, 2017

EVEREST FUND, L.P.

(An Iowa Limited Partnership)

STATEMENTS OF FINANCIAL CONDITION

March 31, 2017 (UNAUDITED) AND DECEMBER 31, 2016 (AUDITED)

	UNAUDITED		AUDITED
	March 31, 2017		DECEMBER 31, 2016
ASSETS
Equity in broker trading accounts:
Cash and investments in marketable securities	$	18,252	$	18,714
Cash in broker trading accounts		3,797,793		3,949,229
Net unrealized trading gains (losses) on open contracts		15,631		109,089
		3,831,676		4,077,032
Other Assets
Investments in marketable securities
Interest receivable		1,738		1,171
TOTAL ASSETS	$	3,833,414	$	4,078,203
LIABILITIES AND PARTNERS’ CAPITAL
LIABILITIES:
Management fee payable	$	6,294	$	6,699
General partner fees payable		17,442		18,426
Redemptions payable		0		55,511
Incentive fee payable
Accounts payable & accrued expenses		39,733		40,418
TOTAL LIABILITIES		63,469		121,054
PARTNERS’ CAPITAL (Net Assets)		3,833,414		4,078,203
Limited partners, A Shares (2,211.95716 and 2,211.95716 units outstanding)
TOTAL PARTNERS’ CAPITAL		3,769,945		3,957,148
TOTAL LIABILITIES AND PARTNERS’ CAPITAL	$	3,769,945	$	3,957,148

The accompanying notes are an integral part of this statement.

3

EVEREST FUND, L.P.

(AN IOWA LIMITED PARTNERSHIP)

CONDENSED SCHEDULE OF INVESTMENTS

March 31, 2017

UNAUDITED

	EXPIRATION	NUMBER OF		MARKET		% OF PARTNERS’
	DATES	CONTRACTS		VALUE (OTE)		CAPITAL
LONG POSITIONS:
FUTURES POSITION
Interest rates	Jun 17- Jun 18		70	$	2,888		0.08	%
Metals	May 17- Jun 17		21		-17,363		-0.46	%
Agriculture	May 17- Jun 17		22		-8,501		-0.23	%
Currencies	Jun 17		14		3,769		0.10	%
Indices	Apr 17-Jun 17		51		30,687		0.81	%
					11,480		0.30	%
Total long positions					11,480		0.30	%
SHORT POSITIONS:
FUTURES POSITIONS
Interest rates	Jul 17- Jun 18		148		-35,808		-0.95	%
Energy	May 17- Jun 17		2		-4,257		-0.11	%
Agriculture	May 17- Jul 17		62		49,547		1.31	%
Currencies	Jun 17- Dec 18		46		-5,331		-0.14	%
					4,151		0.11	%
Total short positions					4,151		0.11	%
TOTAL OPEN CONTRACTS					15,631		0.41	%
The accompanying notes are an integral part of these financial statements.

4

EVEREST FUND, L.P.

(AN IOWA LIMITED PARTNERSHIP)

CONDENSED SCHEDULE OF INVESTMENTS

December 31, 2016

AUDITED

							UNREALIZED GAIN
	EXPIRATION	NUMBER OF		% OF PARTNERS’			(LOSS) ON
	DATES	CONTRACT		CAPITAL			OPEN CONTRACTS
Long U.S. Futures Contracts
Interest rates	Mar 17-Mar 18		130		0.15	%	$	5,868
Metals	Mar 17		23		-0.93	%		(36,953	)
Energy	Feb 17-Mar 17		13		0.46	%		18,357
Agriculture	Feb 17-Mar17		41		-0.40	%		(15,821	)
Currencies	Mar 17		2		-0.13	%		(5,190	)
Indices	Mar 17		50		1.64	%		64,758
Total Long Futures Contracts					0.78	%	$	31,019
Forward Positions
Currencies					0.00	%		0.00
Total Long Positions					0.78	%	$	31,019
Short U.S. Futures Contracts
Interest Rates	Mar 17-Dec 17		101		-0.08	%	$	(3,256	)
Metals	Mar 17		17		0.95	%		37,786
Agriculture	Mar 17		31		0.77	%		30,423
Currencies	Mar 17-Sep 18		73		0.48	%		18,818
Indices	Jan 17		2		-0.14	%		(5,701	)
Total Short Futures Contracts					1.97	%	$	78,070
Forward Positions
Currencies					0.00	%		0.00
Total Short Positions					1.97	%	$	78,070
Total Contracts					2.76	%	$	109,089
The accompanying notes are an integral part of these financial statements.

5

EVEREST FUND, L.P.

(AN IOWA LIMITED PARTNERSHIP)

STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED March 31, 2017 AND 2016

UNAUDITED

	THREE MONTHS ENDED		THREE MONTHS ENDED
	March 31, 2017		March 31, 2016
TRADING INCOME (LOSS)
Net realized trading gain (loss)	$	6,853	$	581,075
Change in net unrealized trading gain (loss)		-90,081		-157,582
Brokerage Commissions		-7,411		-7,842
NET TRADING INCOME (LOSS)		-90,638		415,651
Interest income, net of cash management fees		4,324		2,857
TOTAL INCOME		-86,314		418,509
EXPENSES:
General partner management fees		52,074		80,372
Advisor Management fees		19,549		29,935
Incentive fees		0		0
Professional fees		27,826		18,019
Administrative expenses		1,441		1,600
TOTAL EXPENSES		100,889		129,926
NET INCOME	$	-187,203	$	288,583
NET INCOME (LOSS) PER UNIT OF PARTNERSHIP INTEREST	$	-84.63	$	126.60

The accompanying notes are an integral part of these statements.

6

EVEREST FUND, L.P.

(An Iowa Limited Partnership)

STATEMENT OF CHANGES IN PARTNERS’ CAPITAL

FOR THE THREE MONTHS ENDED March 31, 2017

UNAUDITED

	UNITS		LIMITED PTRS
	A SHARES		A SHARES		TOTAL
BALANCES, January 1, 2016	$	2,211.957	$	3,957,148	$	3,957,148
Additional Units Sold		0		0		0
Redemptions		0		0		0
Less Offering Costs		—		0		0
Net profit (Loss)		—		-187,203		-187,203
BALANCES, MARCH 31, 2017	$	2,211.957	$	3,769,945	$	3,769,945
Net asset value per unit January 1, 2017	$	1,788.98
Net profit (loss) per unit		-84.63
Net asset value per unit March 31, 2017	$	1,704.35

The accompanying notes are an integral part of these statements.

7

EVEREST FUND, L.P.

(An Iowa Limited Partnership)

STATEMENT OF CHANGES IN PARTNERS’ CAPITAL

FOR THE THREE MONTHS ENDED March 31, 2016

UNAUDITED

	UNITS		LIMITED PTRS
	A SHARES		A SHARES		TOTAL
BALANCES, January 1, 2016	$	2,491.815	$	5,629,265	$	5,629,265
Additional Units Sold		0		0		0
Redemptions		-212.316		-538,544		-538,544
Less Offering Costs		—		0		0
Net profit (Loss)		—		288,583		288,583
BALANCES, MARCH 31, 2016	$	2,279.499	$	5,379,304	$	5,379,304
Net asset value per unit January 1, 2016	$	2,259.10
Net profit (loss) per unit		100.76
Net asset value per unit March 31, 2016	$	2,359.86

The accompanying notes are an integral part of these statements.

8

EVEREST FUND, L.P.

(An Iowa Limited Partnership)

STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED March 31, 2017 AND 2016

UNAUDITED

	THREE MONTHS ENDED		THREE MONTHS ENDED
	March 31, 2017		March 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	-187,203	$	288,583
Net changes to reconcile net income (loss) to net cash provided (used) by operating activities:
Unrealized gain (loss) on open contracts		93,458		166,861
Interest receivable		-567		-518
Incentive fees payable		0		0
General partner fees payable		-984		1,709
Redemption Payable		-55,511		60,482
Management fees payable		-405		-406
Accounts payable & accrued expenses		-686		5,575
Net cash provided (used) in operating activities		-151,898		522,286
Cash flows from (for) financing activities:
Cash Redemptions paid		0		-538,544
Partner addition of units, net of offering costs		0		0
Net cash provided (used) by financing activities		0		-538,544
Net increase (decrease) in cash and cash equivalents		-151,898		-16,259
Cash and cash equivalents
Beginning of period		3,967,943		5,556,462
End of Period		3,816,045		5,540,203
End of period cash and cash equivalents consist of:
Cash in Banks		18,252		21,336
Cash in broker trading accounts		3,797,793		5,518,867
CASH AND CASH EQUIVALENTS, at end of period		3,816,045	$	5,540,203

The accompanying notes are an integral part of these statements.

9

The Everest Fund, L.P.

(an Iowa Limited Partnership)

Notes to the Financial Statements

March 31, 2017

(1) GENERAL INFORMATION AND SUMMARY

The Everest Fund, L.P., formerly Everest Futures Fund, L.P. (an Iowa Limited Partnership), (the “Partnership”) is a limited partnership organized in June 1988, under the Iowa Uniform Limited Partnership Act (the “Act”) for the purpose of engaging in the speculative trading of commodity futures and options thereon and forward contracts (collectively referred to as “Commodity Interests”). The sole General Partner of the Partnership is Everest Asset Management, Inc. (the “General Partner”).

On July 1, 1995, the Partnership recommenced its offering under a Regulation D, Rule 506 private placement. The private placement offering is continuing at a gross subscription price per unit equal to net asset value (NAV) per unit, plus an organization and offering cost reimbursement fee payable to the General Partner, and an ongoing compensation fee equal to 3% of the net asset value of Class A Units sold. The Class A Units (retail shares) continue to be charged an initial 1% Offering and Organization fee as a reduction to capital.

Currently, R.J. O’Brien and Associates, LLC (“RJO”), 222 South Riverside Plaza, Suite 900, Chicago, Illinois 60606, serves as the Fund’s clearing broker to execute and clear Fund’s futures and equities transactions and provide other brokerage-related services. RJO Professional FX is a division of RJO. RJO Professional FX may execute foreign exchange or other over the counter transaction with the Fund as principal. RJO is a subsidiary of R.J. O’Brien Holdings Corporation. RJO is registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a Futures Commission Merchant (“FCM”) and is a member of the National Futures Association (“NFA”) in several capacities, including as a Forex Dealer Member (“FDM”) and is a member of certain principal U.S. contracts markets. RJO is a full clearing member of the CME Group, the Intercontinental Exchange, NYSE Liffe U.C., and the CBOE Futures Exchange (“CFE”).

(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Revenue Recognition

Commodity futures contracts, forward contracts, physical commodities, and related options are recorded on the trade-date basis and realized gains or losses are recognized when contracts are liquidated. All such transactions are recorded on the identified cost basis and marked to market daily. Unrealized gains or losses on open contracts (the difference between contract trade price and market price) are reported in the statement of financial condition as a net unrealized gain or loss, as there exists a right of offset of unrealized gains or losses in accordance with the Financial Accounting Standards Board Interpretation No. 39 - “Offsetting of Amounts Related to Certain Contracts.” Any change in net unrealized gain or loss from the preceding period is reported in the statement of operations. Fair value of exchange-traded contracts is based upon exchange settlement prices.

10

Fair value of non-exchange-traded contracts is based on third party quoted dealer values on the Interbank market.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash equivalents represent short-term highly liquid investments with maturities of 90 days or less at the date of acquisition. The Partnership maintains deposits with high quality financial institutions in amounts that are in excess of federally insured limits; however, the Partnership does not believe it is exposed to any significant credit risk.

Redemptions Payable

Pursuant to the provisions of FASB ASC 480, Distinguishing Liabilities from Equity, redemptions approved by the General Partner prior to month end with a fixed effective date and fixed amount are recorded as redemptions payable as of month end.

Fair Value of Financial Instruments

The financial instruments held by the Company are reported in the statements of financial condition at fair value, or at carrying amounts that approximate fair value, due to their highly liquid nature and short-term maturity.

Foreign Currency Translation The Partnership’s functional currency is the U.S. dollar, however, it transacts business in currencies other than the U.S. dollar. Assets and liabilities denominated in foreign currencies are translated at the prevailing exchange rates as of the date of the statement of financial conditions. Gains and losses on investment activity are translated at the prevailing exchange rate on the date of each respective transaction while period end balances are translated at the period end currency rates. Realized and unrealized foreign exchange gains or losses are included in trading income or loss in the statements of operations.

Income Taxes

No provision for income taxes has been made in the accompanying financial statements as each partner is responsible for reporting income (loss) based upon the pro rata share of the profits or losses of the Partnership.

The Partnership files U.S. federal and state tax returns.

(3) FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Financial Accounting Standards Board has defined a hierarchy for fair value measurements. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

Level 1. Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2. Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly; and fair value is determined through the use of models or other valuation methodologies. A significant adjustment to a Level 2 input could result in the Level 2 measurement becoming a Level 3 measurement.

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Level 3. Inputs are unobservable for the asset or liability and include situations where there is little, if any, market activity for the asset or liability. The inputs into the determination of fair value are based upon the best information in the circumstances and may require significant management judgment or estimation.

The table below demonstrates the Partnership’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of March 31, 2017 and March 31, 2016:

	Level 1		Level 2		Level 3
Assets at March 31, 2017:
Open positions in futures and option contracts	$	15,631
Total assets at fair value	$	15,631	$	0	$	0
	Level 1		Level 2		Level 3
Assets at March 31, 2016:
Open positions in futures and option contracts	$	-9,276
Total assets at fair value	$	-9,276	$	0	$	0

(4) LIMITED PARTNERSHIP AGREEMENT

The Limited Partners and General Partner share in the profits and losses of the Partnership in proportion to the number of units or unit equivalents held by each. However, no Limited Partner is liable for obligations of the Partnership in excess of their capital contribution and profits, if any, and such other amounts as they may be liable for pursuant to the Act. Distributions of profits are made solely at the discretion of the General Partner.

Responsibility for managing the Partnership is vested solely in the General Partner. The General Partner has delegated complete trading authority to an unrelated party (see Note 5).

Although the Agreement does not permit redemptions for the first six months following a Limited Partner’s admission to the Partnership, the Agreement does permit the Partnership to declare additional regular redemption dates.

The Partnership will be dissolved on December 31, 2020, or upon the occurrence of certain events, as specified in the Limited Partnership agreement.

12

(5) AGREEMENTS AND RELATED PARTY TRANSACTIONS

EMC Capital Management, Inc. (EMC), 2201 Waukegan Road, Suite West 240, Bannockburn, IL 60015; telephone: 847-267-8700, serves as the Partnership’s Commodity Trading Advisor (CTA).

EMC receives a monthly management fee equal to 0.167% (2% annually) of the Partnership’s month-end net asset value, (as defined),and a quarterly incentive fee of 20% of the Partnership’s new net trading profits. The incentive fee is retained by EMC even though trading losses may occur in subsequent quarters; however, no further incentive fees are payable until any such trading losses (other than losses attributable to redeemed units and losses attributable to assets reallocated to another advisor) are recouped by the Partnership.

Effective November 2003, the General Partner charges the Partnership a monthly management fee equal to 0.50% of the Partnership’s Class A beginning-of-month net asset value.

From the monthly management fee the General Partner deducts the round turn trading costs and related exchange fees (between $5.80 to $10.70 per round turn trade on domestic exchanges, and higher for foreign exchanges) and pays the selling agents and certain other parties, if any, up to 50% of the fee retained by the General Partner. The General Partner may replace or add trading advisors at any time.

The clearing agreements with the clearing brokers provide that the clearing brokers charge the Partnership brokerage commissions at the rate of between $5.80 to $10.70 per round-turn trade, plus applicable exchange, give up fees and National Futures Association fees for futures contracts and options on futures contracts executed on domestic exchanges and over the counter markets. For trades on certain foreign exchanges, the rates may be higher. 

The Partnership also reimburses the clearing brokers for all delivery, insurance, storage or other charges incidental to trading and paid to third parties.

The Partnership earns interest on 95% of the Partnership’s average monthly cash balance on deposit with its clearing brokers at a rate equal to the average 91-day Treasury Bill rate during that month.

A substantial portion of the Partnership’s assets are held in a cash account a Everest’s futures broker R.J. O’Brien, the FCM. As is standard in the industry Everest receives 90% of the 3 month T-bill rate on its cash that is unused for trading. The Partnership’s assets at RJO cash account are subject to potential loss resulting from interest rate fluctuations and default.

(6) DERIVATIVE INSTRUMENTS

In the normal course of business, the Partnership engages in trading derivatives by purchasing and selling futures contracts and options on future contracts for its own account. All such trading is effectuated as speculative as opposed to hedging. Effective January 1, 2009, the Partnership adopted the provisions of Accounting Standards Codification 815, Derivatives & Hedging, which requires enhanced disclosures about the objectives and strategies for using derivatives and quantitative disclosures about the fair value amounts, and gains and losses on derivatives.

13

See below for such disclosures.

Fair Value of Derivative Instruments
	Location- Statement of Financial	2017		2016
Speculative Instruments	Condition	Fair Value		Fair Value
Futures Contracts	Net unrealized gain (loss) on open contracts	$	15,631	$	-9,276
		2017		2016
Speculative Instruments	Location- Statement of Operations	Fair Value		Fair Value
Futures Contracts	Net realized trading gains(losses)	$	-557	$	573,233
Futures Contracts	Change in unrealized gains(losses)	$	-90,081	$	-157,582

Asset Derivatives
Balance Sheet Location	Fair Value		# of contracts
Agricultural
Net unrealized trading gains on open contracts		-8,501		22
Currencies
Net unrealized trading gains on open contracts		3,769		14
Metals
Net unrealized trading gains on open contracts		-17,363		21
Interest rates
Net unrealized trading gains on open contracts		2,888		70
Indices
Net unrealized trading gains on open contracts		30,687		51
		11,480		178

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Liability Derivatives
Balance Sheet Location	Fair Value		# of contracts		Net
Agricultural
Net unrealized trading gains on open contracts		49,547		62		41,046
Currencies
Net unrealized trading gains on open contracts		-5,331		46		-1,562
Energy
Net unrealized trading gains on open contracts		-4,257		2		-4,257
Metals
Net unrealized trading gains on open contracts		0.00		0		-17,363
Interest rates
Net unrealized trading gains on open contracts		-35,808		148		-32,920
Indices
Net unrealized trading gains on open contracts		0.00		0		30,687
		4,151		258		15,631

Trading Revenue for the Three Months Ended March 31, 2017

Line Item in Income Statement

Realized	$	-557
Change in unrealized	$	-90,081
	$	-90,638

Includes net foreign currency translation gain (loss)

Trading Revenue for the Three Months Ended March 31, 2016

Realized	$	573,233
Change in unrealized	$	-157,582
	$	415,651

Includes net foreign currency translation gain (loss)

15

Total average of futures contracts bought and sold

Three months ended March 31, 2017
Total	$	-557
3 month average	$	-186

Total average of futures contracts bought and sold

Three months ended March 31, 2016
Total	$	573,233
3 month average	$	191,078

For the three months ended March 31, 2017, the monthly average of futures contracts bought and sold was approximately $-186. 

(7) FINANCIAL INSTRUMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES

The Partnership engages in the speculative trading of U.S. and foreign futures contracts, options on U.S. and foreign futures contracts, and forward contracts (“collectively derivatives”). These derivatives include both financial and non-financial contracts held as part of a diversified trading strategy. The Partnership is exposed to both market risk, the risk arising from changes in the market value of the contracts; and credit risk, the risk of failure by another party to perform according to the terms of a contract.

The purchase and sale of futures and options on futures contracts requires margin deposits with a Futures Commission Merchant (“FCM”). Additional deposits may be necessary for any loss on contract value. The Commodity Exchange Act requires an FCM to segregate all customer transactions and assets from the FCM’s proprietary activities. A customer’s cash and other property such as U.S. Treasury Bills, deposited with an FCM are considered commingled with all other customer funds subject to the FCM’s segregation requirements. In the event of an FCM’s insolvency, recovery may be limited to a pro rata share of segregated funds available. It is possible that the recovered amount could be less than the total of cash and other property deposited.

For derivatives, risks arise from changes in the market value of the contracts. Theoretically, the Partnership is exposed to a market risk equal to the value of futures and forward contracts purchased and unlimited liability on such contracts sold short. As both a buyer and seller of options, the Partnership pays or receives a premium at the outset and then bears the risk of unfavorable changes in the price of the contract underlying the option.

In the case of forward contracts, over-the-counter options contracts or swap contracts, which are traded on the interbank or other institutional market rather than on exchanges, the counterparty is generally a single bank or other financial institution, rather than a clearinghouse backed by a group of financial institutions; thus, there likely will be greater counterparty credit risk. The Partnership trades only with those counterparties that it believes to be creditworthy. All positions of the Partnership are valued each day on a mark-to-market basis. There can be no assurance that any clearing member, clearinghouse or other counterparty will be able to meet its obligations to the Partnership.

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(8) FINANCIAL HIGHLIGHTS

The following financial highlights show the Partnership’s financial performance for the three months ended March 31, 2017 and March 31, 2016.

	March 31, 2017			March 31, 2016
	Class A			Class A
Total return before distributions*		-4.73	%		4.46	%
Ratio to average net assets:
Net investment Income (loss)**		-9.86	%		-8.83	%
Management fees		5.32	%		5.59	%
Incentive fees		0.00	%		0.00	%
Other expenses		4.99	%		3.44	%
Total expenses**		10.30	%		9.03	%

*Not annualized

**Annualized 

Interim Financial Statements

The statements of financial condition, including the consolidated schedule of investments, as of March 31, 2017, the statements of operations for the three months ended March 31, 2017 and 2016, the statements of cash flows and changes in partners’ capital (net asset value) for the three months ended March 31, 2017 and 2016 and the accompanying notes to the financial statements are unaudited.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles may be omitted pursuant to such rules and regulations. In the opinion of management, such financial statements and accompanying disclosures reflect all adjustments, which were of a normal and recurring nature, necessary for a fair presentation of financial position as of March 31, 2017, results of operations for the three months ended March 31, 2017 and 2016, cash flows and changes in partners’ capital (net asset value) for the three months ended March 31, 2017 and 2016. The results of operations for the full three months ended March 31, 2017 and 2016 are not necessarily indicative of the results to be expected for the full year or any other period. These financial statements should be read in conjunction with the audited financial statements and the notes thereto included in our form 10-k as filed with the Securities and Exchange Commission.

17

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation 

Each months ended March 31, 2017 compared to each months ended March 31, 2016.

Class A Units were negative 1.64% in January 2017 resulting in a Net Asset Value per unit of $1,759.68 as of January 31, 2017.

Class A Units were positive 8.23% in January 2016 resulting in a Net Asset Value per unit of $2,445.12 as of January 31, 2016.

The month of January began with the promise of stability in the markets and turned chaotic in the days after January 20th.

The Fund had gains in stock indices and metals, but larger losses in energies, currencies, interest rates and grains as these markets had sharp reversals. 

Class A Units were positive 3.98% in February 2017 resulting in a Net Asset Value per unit of $1,829.77 as of February 28, 2017.

Class A Units were positive 4.89% in February 2016 resulting in a Net Asset Value per unit of $2,564.60 as of February 29, 2016. 

We had gains from international stock indices and interest rates. Smaller losses were incurred in metals, currencies and grains. 

Class A Units were negative 6.85% in March 2017 resulting in a Net Asset Value per unit of $1,704.35 as of March 31, 2017.

Class A Units were negative 7.98% in March 2016 resulting in a Net Asset Value per unit of $2,359.86 as of March 31, 2016.

The Fund had gains in global stock indices but continued chaos in the US government created abrupt price reversals (and therefore losses for the Fund) in currencies, interest rates, metals and energies. 

Item 3. Quantitative and Qualitative Disclosures about Market Risk 

There has been no material change with respect to market risk since the “Quantitative and Qualitative Disclosures About Market Risk” was made in the Form 10K of the Partnership dated December 31, 2016.

18

Item 4. Controls and Procedures 

As of March 31, 2017 an evaluation was performed by the company under the supervision and with the participation of management, including the President of the Company, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures. Based on that evaluation, the Company’s management, including the President, concluded that the Company’s disclosure controls and procedures are effective in timely alerting them to material information relating to the Company that is required to be included in the Company’s period filings with the Securities and Exchange Commission. There have been no significant changes in the company’s internal controls or in other factors that could significantly affect those internal controls subsequent to the date the company carried out its evaluation.

Part II. OTHER INFORMATION

Item 1. Legal Proceedings

Neither the Partnership, nor the General Partner, is party to any pending material legal proceeding.

Item 1A. Risk Factors

There has been no material change with respect to risk factors since the “Risk Factors” were disclosed in the Form 10K of the Partnership dated December 31, 2016.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

RECENT SALES OF UNREGISTERED SECURITIES A UNITS

	Three months		Three months
	ended March 31, 2017		ended March 31, 2016
Units Sold		0		0
Value of Units Sold	$	0	$	0

1% of the proceeds from the above sales were used to pay the Partnership’s Organization and Offering charge. The remaining 99% was invested in the Partnership.

See Part I, Statement of Changes in Partner’s Capital

Item 3. Defaults Upon Senior Securities

None

Item 4. Submission of Matters to a Vote of Security Holders

None

Item 5. Other Information

None 

19

Item 6. Exhibits and Reports on Form 8-K

a)         Exhibits

Exhibit Number	Description of Document	Page Number
31	Certification by Chief Executive Officer and Chief Financial Officer
	Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	E- 1-2
32	Certification by Chief Executive Officer and Chief Financial Officer
	Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	E - 3

b)         Reports on Form 8-K

none

20

SIGNATURES 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned and thereunto duly authorized.

	EVEREST FUND, L.P.
Date: May 15, 2017	By:	Everest Asset Management, Inc.,
		its General Partner
	By:	/s/ Peter Lamoureux
		Peter Lamoureux
		President

21

EX-31

EXHIBIT 31

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Peter Lamoureux, certify that:

1. I have reviewed this quarterly report on Form 10-Q of the Everest Fund, L.P.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	EVEREST FUND, L.P.
Date:  May 15, 2017	By:  Everest Asset Management, Inc., its General Partner
By: /s/ Peter Lamoureux
Peter Lamoureux
Director, President, and Treasurer

EX-32

EXHIBIT 32

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 

In connection with the Quarterly Report of the Everest Fund, L.P. (the "Partnership"), for the quarter ended March 31, 2017, as filed with the U.S. Securities and Exchange Commission on the date hereof (the "Report"), I, Peter Lamoureux, President of Everest Asset Management, Inc., the general partner of the Everest Fund, L.P. (the "Fund"), hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: 

(1)           The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)           The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Fund. 

Date: May 15, 2017

By: /s/ Peter Lamoureux

Name: Peter Lamoureux

Title: Director, President and Treasurer

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 10, 2017
Document And Entity Information
Entity Registrant Name	EVEREST FUND L P
Entity Central Index Key	0000837919
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		0
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2017

XML

Statements of Financial Condition - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Equity in broker trading accounts:
Cash and investments in marketable securities	$ 18,252	$ 18,714
Cash in broker trading accounts	3,797,793	3,949,229
Net unrealized trading gains (losses) on open contracts	15,631	109,089
Total cash & equity in broker trading accounts	3,831,676	4,077,032
Other assets:
Interest receivable	1,738	1,171
Total Assets	3,833,414	4,078,203
LIABILITIES
Management fees payable	6,294	6,699
General partner fees payable	17,442	18,426
Redemptions payable	0	55,511
Accounts payable & accrued expenses	39,733	40,418
Total Liabilities	63,469	121,054
PARTNERS' CAPITAL (Net Assets)
Limited partners, A Shares (2,211.95716 and 2,211.95716 units outstanding)	3,769,945	3,957,148
Total Partners' Capital	3,769,945	3,957,148
Total Liabilities & Partners' Capital	$ 3,833,414	$ 4,078,203

XML

Statements of Financial Condition (Parenthetical) - shares	Mar. 31, 2017	Dec. 31, 2016
Partners Capital
Limited Partners Class A, units outstanding	2,211.95716	2,211.95716

XML

CONDENSED SCHEDULES OF INVESTMENTS (Unaudited)	Mar. 31, 2017 USD ($) Integer	Mar. 31, 2016 USD ($) Integer
Number of contracts | Integer		109,089
Market value	$ 15,631
% of Partners' Capital	0.41%	2.76%
LONG
Market value	$ 11,480	$ 31,019
% of Partners' Capital	0.30%	0.78%
SHORT
Market value	$ 4,151
% of Partners' Capital	0.11%	1.97%
Futures contracts | LONG
Market value	$ 11,480	$ 31,019
% of Partners' Capital	0.30%	0.78%
Futures contracts | LONG | Interest rates
Number of contracts | Integer	70	130
Market value	$ 2,888	$ 5,868
% of Partners' Capital	0.08%	0.15%
Futures contracts | LONG | Metals [Member]
Number of contracts | Integer	21	23
Market value	$ (17,363)	$ (36,953)
% of Partners' Capital	(0.46%)	(0.93%)
Futures contracts | LONG | Agriculture
Number of contracts | Integer	22	41
Market value	$ (8,501)	$ (15,821)
% of Partners' Capital	(0.23%)	(0.40%)
Futures contracts | LONG | Currencies
Number of contracts | Integer	14	2
Market value	$ 3,769	$ (5,190)
% of Partners' Capital	0.10%	(0.13%)
Futures contracts | LONG | Indices [Member]
Number of contracts | Integer	51	50
Market value	$ 30,687	$ 64,758
% of Partners' Capital	0.81%	1.64%
Futures contracts | LONG | Energy
Number of contracts | Integer		13
Market value		$ 18,357
% of Partners' Capital		0.46%
Futures contracts | SHORT
Number of contracts | Integer		78,070
Market value	$ 4,151	$ 78,070
% of Partners' Capital	0.11%	1.97%
Futures contracts | SHORT | Interest rates
Number of contracts | Integer	148	101
Market value	$ (35,808)	$ (3,256)
% of Partners' Capital	(0.95%)	(0.80%)
Futures contracts | SHORT | Metals [Member]
Number of contracts | Integer		17
Market value		$ 37,786
% of Partners' Capital		0.95%
Futures contracts | SHORT | Agriculture
Number of contracts | Integer	62	31
Market value	$ 49,547	$ 30,423
% of Partners' Capital	1.31%	0.77%
Futures contracts | SHORT | Currencies
Number of contracts | Integer	46	73
Market value	$ (5,331)	$ 18,818
% of Partners' Capital	(0.14%)	0.48%
Futures contracts | SHORT | Indices [Member]
Number of contracts | Integer		2
Market value		$ (5,701)
% of Partners' Capital		(0.14%)
Futures contracts | SHORT | Energy
Number of contracts | Integer	2
Market value	$ (4,257)
% of Partners' Capital	(0.11%)

XML

Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Net realized trading gain (loss)	$ 6,853	$ 581,075
Change in net unrealized trading gain (loss)	(90,081)	(157,582)
Brokerage commissions	(7,411)	(7,842)
NET TRADING INCOME (LOSS)	(90,638)	415,651
Interest income, net of cash management fees	4,324	2,857
TOTAL INCOME	(86,314)	418,509
EXPENSES:
General partner management fees	52,074	80,372
Advisor Management fees	19,549	29,935
Incentive fees	0	0
Professional fees	27,826	18,019
Administrative expenses	1,441	1,600
TOTAL EXPENSES	100,889	129,926
NET INCOME	$ (187,203)	$ 288,583
NET INCOME (LOSS) PER UNIT OF PARTNERSHIP INTEREST	$ (84.63)	$ 126.60

XML

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL - USD ($)	Unit A Shares	Limited Ptrs A Shares	Total
BEGINNING PARTNERS' CAPITAL,Unit at Dec. 31, 2015	2,491.815	5,629,265	5,629,265
Net Asset Value Per Unit, beginning at Dec. 31, 2015	$ 2,259.10
Additions, unit	0	0	0
Redemptions, unit	(212.316)	(538,544)	(538,544)
Offering costs		$ 0	$ 0
Net profit (loss)		$ 288,583	$ 288,583
ENDING PARTNERS' CAPITAL,Unit at Mar. 31, 2016	2,279.499	5,379,304	5,379,304
Net Asset Value Per Unit, ending at Mar. 31, 2016	$ 2,359.86
BEGINNING PARTNERS' CAPITAL,Unit at Dec. 31, 2016	2,211.957	3,957,148	3,957,148
Net Asset Value Per Unit, beginning at Dec. 31, 2016	$ 1,788.98
Additions, unit	0	0	0
Redemptions, unit	0	0	0
Offering costs	$ 0	$ 0	$ 0
Net profit (loss)		$ (187,203)	$ (187,203)
ENDING PARTNERS' CAPITAL,Unit at Mar. 31, 2017	2,211.957	3,769,945	3,769,945
Net Asset Value Per Unit, ending at Mar. 31, 2017	$ 1,704.35

XML

Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ (187,203)	$ 288,583
Net changes to reconcile net income (loss) to net cash provided (used) by operating activities:
Unrealized gain (loss) on open contracts	93,458	166,861
Interest receivable	(567)	(518)
Incentive fees payable	0	0
General partner fees payable	(984)	1,709
Redemption payable	(55,511)	60,482
Management fees payable	(405)	(406)
Accounts payable & accrued expenses	(686)	5,575
Net cash provided (used) in operating activities	(151,898)	522,286
Cash flows from (for) financing activities:
Cash Redemptions paid	0	(538,544)
Partner addition of units, net of offering costs	0	0
Net cash provided (used) by financing activities	0	(538,544)
Net increase (decrease) in cash and cash equivalents	(151,898)	(16,259)
Cash and cash equivalents Beginning of period	3,967,943	5,556,462
Cash and cash equivalents End of period	3,816,045	5,540,203
Cash & investment in marketable securities consist of:
Cash in banks	18,252	21,336
Cash in broker trading accounts	3,797,793	5,518,867
Cash and cash equivalents End of period	$ 3,816,045	$ 5,540,203

XML

1. GENERAL INFORMATION AND SUMMARY

3 Months Ended

Mar. 31, 2017

Accounting Policies [Abstract]

1. GENERAL INFORMATION AND SUMMARY

The Everest Fund, L.P., formerly Everest Futures Fund, L.P. (an Iowa Limited Partnership), (the “Partnership”) is a limited partnership organized in June 1988, under the Iowa Uniform Limited Partnership Act (the “Act”) for the purpose of engaging in the speculative trading of commodity futures and options thereon and forward contracts (collectively referred to as “Commodity Interests”). The sole General Partner of the Partnership is Everest Asset Management, Inc. (the “General Partner”).

On July 1, 1995, the Partnership recommenced its offering under a Regulation D, Rule 506 private placement. The private placement offering is continuing at a gross subscription price per unit equal to net asset value (NAV) per unit, plus an organization and offering cost reimbursement fee payable to the General Partner, and an ongoing compensation fee equal to 3% of the net asset value of Class A Units sold. The Class A Units (retail shares) continue to be charged an initial 1% Offering and Organization fee as a reduction to capital.

Currently, R.J. O’Brien and Associates, LLC (“RJO”), 222 South Riverside Plaza, Suite 900, Chicago, Illinois 60606, serves as the Fund’s clearing broker to execute and clear Fund’s futures and equities transactions and provide other brokerage-related services. RJO Professional FX is a division of RJO. RJO Professional FX may execute foreign exchange or other over the counter transaction with the Fund as principal. RJO is a subsidiary of R.J. O’Brien Holdings Corporation. RJO is registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a Futures Commission Merchant (“FCM”) and is a member of the National Futures Association (“NFA”) in several capacities, including as a Forex Dealer Member (“FDM”) and is a member of certain principal U.S. contracts markets. RJO is a full clearing member of the CME Group, the Intercontinental Exchange, NYSE Liffe U.C., and the CBOE Futures Exchange (“CFE”).

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2017

Accounting Policies [Abstract]

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Revenue Recognition

Commodity futures contracts, forward contracts, physical commodities, and related options are recorded on the trade-date basis and realized gains or losses are recognized when contracts are liquidated. All such transactions are recorded on the identified cost basis and marked to market daily. Unrealized gains or losses on open contracts (the difference between contract trade price and market price) are reported in the statement of financial condition as a net unrealized gain or loss, as there exists a right of offset of unrealized gains or losses in accordance with the Financial Accounting Standards Board Interpretation No. 39 - “Offsetting of Amounts Related to Certain Contracts.” Any change in net unrealized gain or loss from the preceding period is reported in the statement of operations. Fair value of exchange-traded contracts is based upon exchange settlement prices.

Fair value of non-exchange-traded contracts is based on third party quoted dealer values on the Interbank market.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash equivalents represent short-term highly liquid investments with maturities of 90 days or less at the date of acquisition. The Partnership maintains deposits with high quality financial institutions in amounts that are in excess of federally insured limits; however, the Partnership does not believe it is exposed to any significant credit risk.

Redemptions Payable

Pursuant to the provisions of FASB ASC 480, Distinguishing Liabilities from Equity, redemptions approved by the General Partner prior to month end with a fixed effective date and fixed amount are recorded as redemptions payable as of month end.

Fair Value of Financial Instruments

The financial instruments held by the Company are reported in the statements of financial condition at fair value, or at carrying amounts that approximate fair value, due to their highly liquid nature and short-term maturity.

Foreign Currency Translation The Partnership’s functional currency is the U.S. dollar, however, it transacts business in currencies other than the U.S. dollar. Assets and liabilities denominated in foreign currencies are translated at the prevailing exchange rates as of the date of the statement of financial conditions. Gains and losses on investment activity are translated at the prevailing exchange rate on the date of each respective transaction while period end balances are translated at the period end currency rates. Realized and unrealized foreign exchange gains or losses are included in trading income or loss in the statements of operations.

Income Taxes

No provision for income taxes has been made in the accompanying financial statements as each partner is responsible for reporting income (loss) based upon the pro rata share of the profits or losses of the Partnership.

The Partnership files U.S. federal and state tax returns.

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3. FAIR VALUE OF FINANCIAL INSTRUMENTS

3 Months Ended

Mar. 31, 2017

Fair Value Disclosures [Abstract]

3. FAIR VALUE OF FINANCIAL INSTRUMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Financial Accounting Standards Board has defined a hierarchy for fair value measurements. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

Level 1. Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2. Inputs other than quoted prices within Level 1 that are observable for the asset or liability, either directly or indirectly; and fair value is determined through the use of models or other valuation methodologies. A significant adjustment to a Level 2 input could result in the Level 2 measurement becoming a Level 3 measurement.

Level 3. Inputs are unobservable for the asset or liability and include situations where there is little, if any, market activity for the asset or liability. The inputs into the determination of fair value are based upon the best information in the circumstances and may require significant management judgment or estimation.

The table below demonstrates the Partnership’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis as of March 31, 2017 and March 31, 2016:

	Level 1		Level 2		Level 3
Assets at March 31, 2017:
Open positions in futures and option contracts	$	15,631
Total assets at fair value	$	15,631	$	0	$	0
	Level 1		Level 2		Level 3
Assets at March 31, 2016:
Open positions in futures and option contracts	$	-9,276
Total assets at fair value	$	-9,276	$	0	$	0

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4. LIMITED PARTNERSHIP AGREEMENT

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

4. LIMITED PARTNERSHIP AGREEMENT

The Limited Partners and General Partner share in the profits and losses of the Partnership in proportion to the number of units or unit equivalents held by each. However, no Limited Partner is liable for obligations of the Partnership in excess of their capital contribution and profits, if any, and such other amounts as they may be liable for pursuant to the Act. Distributions of profits are made solely at the discretion of the General Partner.

Responsibility for managing the Partnership is vested solely in the General Partner. The General Partner has delegated complete trading authority to an unrelated party (see Note 5).

Although the Agreement does not permit redemptions for the first six months following a Limited Partner’s admission to the Partnership, the Agreement does permit the Partnership to declare additional regular redemption dates.

The Partnership will be dissolved on December 31, 2020, or upon the occurrence of certain events, as specified in the Limited Partnership agreement.

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5. AGREEMENTS AND RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2017

Related Party Transactions [Abstract]

5. AGREEMENTS AND RELATED PARTY TRANSACTIONS

EMC Capital Management, Inc. (EMC), 2201 Waukegan Road, Suite West 240, Bannockburn, IL 60015; telephone: 847-267-8700, serves as the Partnership’s Commodity Trading Advisor (CTA).

EMC receives a monthly management fee equal to 0.167% (2% annually) of the Partnership’s month-end net asset value, (as defined),and a quarterly incentive fee of 20% of the Partnership’s new net trading profits. The incentive fee is retained by EMC even though trading losses may occur in subsequent quarters; however, no further incentive fees are payable until any such trading losses (other than losses attributable to redeemed units and losses attributable to assets reallocated to another advisor) are recouped by the Partnership.

Effective November 2003, the General Partner charges the Partnership a monthly management fee equal to 0.50% of the Partnership’s Class A beginning-of-month net asset value.

From the monthly management fee the General Partner deducts the round turn trading costs and related exchange fees (between $5.80 to $10.70 per round turn trade on domestic exchanges, and higher for foreign exchanges) and pays the selling agents and certain other parties, if any, up to 50% of the fee retained by the General Partner. The General Partner may replace or add trading advisors at any time.

The clearing agreements with the clearing brokers provide that the clearing brokers charge the Partnership brokerage commissions at the rate of between $5.80 to $10.70 per round-turn trade, plus applicable exchange, give up fees and National Futures Association fees for futures contracts and options on futures contracts executed on domestic exchanges and over the counter markets. For trades on certain foreign exchanges, the rates may be higher. 

The Partnership also reimburses the clearing brokers for all delivery, insurance, storage or other charges incidental to trading and paid to third parties.

The Partnership earns interest on 95% of the Partnership’s average monthly cash balance on deposit with its clearing brokers at a rate equal to the average 91-day Treasury Bill rate during that month.

A substantial portion of the Partnership’s assets are held in a cash account a Everest’s futures broker R.J. O’Brien, the FCM. As is standard in the industry Everest receives 90% of the 3 month T-bill rate on its cash that is unused for trading. The Partnership’s assets at RJO cash account are subject to potential loss resulting from interest rate fluctuations

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6. DERIVATIVE INSTRUMENTS

3 Months Ended

Mar. 31, 2017

Derivative Instruments

6. DERIVATIVE INSTRUMENTS

In the normal course of business, the Partnership engages in trading derivatives by purchasing and selling futures contracts and options on future contracts for its own account. All such trading is effectuated as speculative as opposed to hedging. Effective January 1, 2009, the Partnership adopted the provisions of Accounting Standards Codification 815, Derivatives & Hedging, which requires enhanced disclosures about the objectives and strategies for using derivatives and quantitative disclosures about the fair value amounts, and gains and losses on derivatives.

See below for such disclosures.

Fair Value of Derivative Instruments
	Location- Statement of Financial	2017		2016
Speculative Instruments	Condition	Fair Value		Fair Value
Futures Contracts	Net unrealized gain (loss) on open contracts	$	15,631	$	-9,276
		2017		2016
Speculative Instruments	Location- Statement of Operations	Fair Value		Fair Value
Futures Contracts	Net realized trading gains(losses)	$	-557	$	573,233
Futures Contracts	Change in unrealized gains(losses)	$	-90,081	$	-157,582

Asset Derivatives
Balance Sheet Location	Fair Value		# of contracts
Agricultural
Net unrealized trading gains on open contracts		-8,501		22
Currencies
Net unrealized trading gains on open contracts		3,769		14
Metals
Net unrealized trading gains on open contracts		-17,363		21
Interest rates
Net unrealized trading gains on open contracts		2,888		70
Indices
Net unrealized trading gains on open contracts		30,687		51
		11,480		178

Liability Derivatives
Balance Sheet Location	Fair Value		# of contracts		Net
Agricultural
Net unrealized trading gains on open contracts		49,547		62		41,046
Currencies
Net unrealized trading gains on open contracts		-5,331		46		-1,562
Energy
Net unrealized trading gains on open contracts		-4,257		2		-4,257
Metals
Net unrealized trading gains on open contracts		0.00		0		-17,363
Interest rates
Net unrealized trading gains on open contracts		-35,808		148		-32,920
Indices
Net unrealized trading gains on open contracts		0.00		0		30,687
		4,151		258		15,631

Trading Revenue for the Three Months Ended March 31, 2017

Line Item in Income Statement

Realized	$	-557
Change in unrealized	$	-90,081
	$	-90,638

Includes net foreign currency translation gain (loss)

Trading Revenue for the Three Months Ended March 31, 2016

Realized	$	573,233
Change in unrealized	$	-157,582
	$	415,651

Includes net foreign currency translation gain (loss)

Total average of futures contracts bought and sold

Three months ended March 31, 2017
Total	$	-557
3 month average	$	-186

Total average of futures contracts bought and sold

Three months ended March 31, 2016
Total	$	573,233
3 month average	$	191,078

For the three months ended March 31, 2017, the monthly average of futures contracts bought and sold was approximately $-186. 

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7. FINANCIAL INSTRUMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

7. FINANCIAL INSTRUMENTS, OFF-BALANCE SHEET RISKS AND CONTINGENCIES

The Partnership engages in the speculative trading of U.S. and foreign futures contracts, options on U.S. and foreign futures contracts, and forward contracts (“collectively derivatives”). These derivatives include both financial and non-financial contracts held as part of a diversified trading strategy. The Partnership is exposed to both market risk, the risk arising from changes in the market value of the contracts; and credit risk, the risk of failure by another party to perform according to the terms of a contract.

The purchase and sale of futures and options on futures contracts requires margin deposits with a Futures Commission Merchant (“FCM”). Additional deposits may be necessary for any loss on contract value. The Commodity Exchange Act requires an FCM to segregate all customer transactions and assets from the FCM’s proprietary activities. A customer’s cash and other property such as U.S. Treasury Bills, deposited with an FCM are considered commingled with all other customer funds subject to the FCM’s segregation requirements. In the event of an FCM’s insolvency, recovery may be limited to a pro rata share of segregated funds available. It is possible that the recovered amount could be less than the total of cash and other property deposited.

For derivatives, risks arise from changes in the market value of the contracts. Theoretically, the Partnership is exposed to a market risk equal to the value of futures and forward contracts purchased and unlimited liability on such contracts sold short. As both a buyer and seller of options, the Partnership pays or receives a premium at the outset and then bears the risk of unfavorable changes in the price of the contract underlying the option.

In the case of forward contracts, over-the-counter options contracts or swap contracts, which are traded on the interbank or other institutional market rather than on exchanges, the counterparty is generally a single bank or other financial institution, rather than a clearinghouse backed by a group of financial institutions; thus, there likely will be greater counterparty credit risk. The Partnership trades only with those counterparties that it believes to be creditworthy. All positions of the Partnership are valued each day on a mark-to-market basis. There can be no assurance that any clearing member, clearinghouse or other counterparty will be able to meet its obligations to the Partnership.

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8. FINANCIAL HIGHLIGHTS

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

8. FINANCIAL HIGHLIGHTS

The following financial highlights show the Partnership’s financial performance for the three months ended March 31, 2017 and March 31, 2016.

	March 31, 2017			March 31, 2016
	Class A			Class A
Total return before distributions*		-4.73	%		4.46	%
Ratio to average net assets:
Net investment Income (loss)**		-9.86	%		-8.83	%
Management fees		5.32	%		5.59	%
Incentive fees		0.00	%		0.00	%
Other expenses		4.99	%		3.44	%
Total expenses**		10.30	%		9.03	%

*Not annualized

**Annualized 

Interim Financial Statements

The statements of financial condition, including the consolidated schedule of investments, as of March 31, 2017, the statements of operations for the three months ended March 31, 2017 and 2016, the statements of cash flows and changes in partners’ capital (net asset value) for the three months ended March 31, 2017 and 2016 and the accompanying notes to the financial statements are unaudited.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles may be omitted pursuant to such rules and regulations. In the opinion of management, such financial statements and accompanying disclosures reflect all adjustments, which were of a normal and recurring nature, necessary for a fair presentation of financial position as of March 31, 2017, results of operations for the three months ended March 31, 2017 and 2016, cash flows and changes in partners’ capital (net asset value) for the three months ended March 31, 2017 and 2016. The results of operations for the full three months ended March 31, 2017 and 2016 are not necessarily indicative of the results to be expected for the full year or any other period. These financial statements should be read in conjunction with the audited financial statements and the notes thereto included in our form 10-k as filed with the Securities and Exchange Commission.

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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2017

Accounting Policies [Abstract]

Revenue Recognition

Commodity futures contracts, forward contracts, physical commodities, and related options are recorded on the trade-date basis and realized gains or losses are recognized when contracts are liquidated. All such transactions are recorded on the identified cost basis and marked to market daily. Unrealized gains or losses on open contracts (the difference between contract trade price and market price) are reported in the statement of financial condition as a net unrealized gain or loss, as there exists a right of offset of unrealized gains or losses in accordance with the Financial Accounting Standards Board Interpretation No. 39 - “Offsetting of Amounts Related to Certain Contracts.” Any change in net unrealized gain or loss from the preceding period is reported in the statement of operations. Fair value of exchange-traded contracts is based upon exchange settlement prices.

Fair value of non-exchange-traded contracts is based on third party quoted dealer values on the Interbank market.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash equivalents represent short-term highly liquid investments with maturities of 90 days or less at the date of acquisition. The Partnership maintains deposits with high quality financial institutions in amounts that are in excess of federally insured limits; however, the Partnership does not believe it is exposed to any significant credit risk.

Redemptions Payable

Pursuant to the provisions of FASB ASC 480, Distinguishing Liabilities from Equity, redemptions approved by the General Partner prior to month end with a fixed effective date and fixed amount are recorded as redemptions payable as of month end.

Fair Value of Financial Instruments

The financial instruments held by the Company are reported in the statements of financial condition at fair value, or at carrying amounts that approximate fair value, due to their highly liquid nature and short-term maturity.

Foreign Currency Translation

The Partnership’s functional currency is the U.S. dollar, however, it transacts business in currencies other than the U.S. dollar. Assets and liabilities denominated in foreign currencies are translated at the prevailing exchange rates as of the date of the statement of financial conditions. Gains and losses on investment activity are translated at the prevailing exchange rate on the date of each respective transaction while period end balances are translated at the period end currency rates. Realized and unrealized foreign exchange gains or losses are included in trading income or loss in the statements of operations.

Income Taxes

No provision for income taxes has been made in the accompanying financial statements as each partner is responsible for reporting income (loss) based upon the pro rata share of the profits or losses of the Partnership.

The Partnership files U.S. federal and state tax returns.

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3. FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2017

Fair Value Of Financial Instruments Tables

Fair Value Measurement

	Level 1		Level 2		Level 3
Assets at March 31, 2017:
Open positions in futures and option contracts	$	15,631
Total assets at fair value	$	15,631	$	0	$	0
	Level 1		Level 2		Level 3
Assets at March 31, 2016:
Open positions in futures and option contracts	$	-9,276
Total assets at fair value	$	-9,276	$	0	$	0

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6. DERIVATIVE INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2017

Derivative Instruments Tables

Fair Value of Derivative Instruments

Fair Value of Derivative Instruments
	Location- Statement of Financial	2017		2016
Speculative Instruments	Condition	Fair Value		Fair Value
Futures Contracts	Net unrealized gain (loss) on open contracts	$	15,631	$	-9,276
		2017		2016
Speculative Instruments	Location- Statement of Operations	Fair Value		Fair Value
Futures Contracts	Net realized trading gains(losses)	$	-557	$	573,233
Futures Contracts	Change in unrealized gains(losses)	$	-90,081	$	-157,582

Asset Derivatives
Balance Sheet Location	Fair Value		# of contracts
Agricultural
Net unrealized trading gains on open contracts		-8,501		22
Currencies
Net unrealized trading gains on open contracts		3,769		14
Metals
Net unrealized trading gains on open contracts		-17,363		21
Interest rates
Net unrealized trading gains on open contracts		2,888		70
Indices
Net unrealized trading gains on open contracts		30,687		51
		11,480		178

Liability Derivatives
Balance Sheet Location	Fair Value		# of contracts		Net
Agricultural
Net unrealized trading gains on open contracts		49,547		62		41,046
Currencies
Net unrealized trading gains on open contracts		-5,331		46		-1,562
Energy
Net unrealized trading gains on open contracts		-4,257		2		-4,257
Metals
Net unrealized trading gains on open contracts		0.00		0		-17,363
Interest rates
Net unrealized trading gains on open contracts		-35,808		148		-32,920
Indices
Net unrealized trading gains on open contracts		0.00		0		30,687
		4,151		258		15,631

Trading Revenue

Trading Revenue for the Three Months Ended March 31, 2017

Line Item in Income Statement

Realized	$	-557
Change in unrealized	$	-90,081
	$	-90,638

Includes net foreign currency translation gain (loss)

Trading Revenue for the Three Months Ended March 31, 2016

Realized	$	573,233
Change in unrealized	$	-157,582
	$	415,651

Includes net foreign currency translation gain (loss)

Total average of futures contracts bought and sold

Three months ended March 31, 2017
Total	$	-557
3 month average	$	-186

Total average of futures contracts bought and sold

Three months ended March 31, 2016
Total	$	573,233
3 month average	$	191,078

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8. FINANCIAL HIGHLIGHTS (Tables)

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Return summary

	March 31, 2017			March 31, 2016
	Class A			Class A
Total return before distributions*		-4.73	%		4.46	%
Ratio to average net assets:
Net investment Income (loss)**		-9.86	%		-8.83	%
Management fees		5.32	%		5.59	%
Incentive fees		0.00	%		0.00	%
Other expenses		4.99	%		3.44	%
Total expenses**		10.30	%		9.03	%

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3. FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($)	Mar. 31, 2017	Mar. 31, 2016
Level 1
Assets	$ 15,631	$ (9,276)
Level 1 | Open positions in futures and option contracts
Assets	15,631	(9,276)
Level 2
Assets	0	0
Level 2 | Open positions in futures and option contracts
Assets	0	0
Level 3
Assets	0	0
Level 3 | Open positions in futures and option contracts
Assets	$ 0	$ 0

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6. DERIVATIVE INSTRUMENTS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Net unrealized gain (loss) on open contracts	$ 15,631		$ 109,089
Net realized trading gains (losses)	6,853	$ 581,075
Change in unrealized gains (losses)	(90,081)	(157,582)
Futures Contracts
Net unrealized gain (loss) on open contracts	15,631	(9,276)
Net realized trading gains (losses)	(557)	573,233
Change in unrealized gains (losses)	$ (90,081)	$ (157,582)

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6. DERIVATIVE INSTRUMENTS (Details 1)	Mar. 31, 2017 USD ($) Integer
Number of contracts, asset derivative | Integer	178
Net unrealized trading gains on open contracts, asset derivative, fair value	$ 11,480
Number of contracts, liability derivative | Integer	258
Net unrealized trading gains on open contracts, liability derivative, fair value	$ 4,151
Net unrealized trading gains on open contracts, liability derivative, net	$ 15,631
Agricultural
Number of contracts, asset derivative | Integer	22
Net unrealized trading gains on open contracts, asset derivative, fair value	$ (8,501)
Number of contracts, liability derivative | Integer	62
Net unrealized trading gains on open contracts, liability derivative, fair value	$ 49,547
Net unrealized trading gains on open contracts, liability derivative, net	$ 41,046
Currencies
Number of contracts, asset derivative | Integer	14
Net unrealized trading gains on open contracts, asset derivative, fair value	$ 3,769
Number of contracts, liability derivative | Integer	46
Net unrealized trading gains on open contracts, liability derivative, fair value	$ (5,331)
Net unrealized trading gains on open contracts, liability derivative, net	$ (1,562)
Energy [Member]
Number of contracts, liability derivative | Integer	2
Net unrealized trading gains on open contracts, liability derivative, fair value	$ (4,257)
Net unrealized trading gains on open contracts, liability derivative, net	$ (4,257)
Metals
Number of contracts, asset derivative | Integer	21
Net unrealized trading gains on open contracts, asset derivative, fair value	$ (17,363)
Number of contracts, liability derivative | Integer	0
Net unrealized trading gains on open contracts, liability derivative, fair value	$ 0
Net unrealized trading gains on open contracts, liability derivative, net	$ (17,363)
Interest rates
Number of contracts, asset derivative | Integer	70
Net unrealized trading gains on open contracts, asset derivative, fair value	$ 2,888
Number of contracts, liability derivative | Integer	148
Net unrealized trading gains on open contracts, liability derivative, fair value	$ (35,808)
Net unrealized trading gains on open contracts, liability derivative, net	$ (32,920)
Indices
Number of contracts, asset derivative | Integer	51
Net unrealized trading gains on open contracts, asset derivative, fair value	$ 30,687
Number of contracts, liability derivative | Integer	0
Net unrealized trading gains on open contracts, liability derivative, fair value	$ 0
Net unrealized trading gains on open contracts, liability derivative, net	$ 30,687

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6. DERIVATIVE INSTRUMENTS (Details 2) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Derivative Instruments Details 2
Trading Revenue Realized	$ (557)	$ 573,233
Trading Revenue Change in unrealized	(90,081)	(157,582)
Trading Revenue	(90,638)	415,651
Total	(557)	573,233
3 month average	$ (186)	$ 191,078

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8. FINANCIAL HIGHLIGHTS (Details) - Class A	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Total return before distributions	(4.73%)	4.46%
Ratio to average net assets:
Net investment Income (loss)	(9.86%)	(8.83%)
Management fees	5.32%	5.59%
Incentive fees	0.00%	0.00%
Other expenses	4.99%	3.44%
Total expenses	10.30%	9.03%